By Arra B. Francia, Reporter
SHAKEY’S Pizza Asia Ventures, Inc. (SPAVI) plans to open 20 new stores this year, pushing its expansion outside Metro Manila as it sees more opportunities for growth in the provinces.
In a statement issued Wednesday, the casual dining restaurant operator said this will bring its total store network to 248 by 2019.
The listed firm is banking on higher consumer spending to support its expansion.
“We continue to see consumer spending fueling the Philippine economy, which is still one of Southeast Asia’s fastest-growing markets,” SPAVI President and Chief Executive Officer Vicente L. Gregorio said in a statement.
The target for store expansion this year matches the net openings the company had in 2018, 80% of which are located outside the National Capital Region.
“We are focused on expanding outside Metro Manila where we see great potential in terms of demand for the premium yet affordable dining experience we provide. We also tapped more local partners this year to run our provincial operations and to ensure that we have on-the-ground accountability even in farther-flung areas,” Mr. Gregorio said.
The company also noted that 75% of the newly-opened stores were franchised. Franchising a Shakey’s store entails an investment of about P18-24 million, depending on the size and location. SPAVI earlier said that the total investment can be recovered in three to five years’ time, with the franchise contract running for a minimum of 10 years.
In 2017, SPAVI said it looks to have a network of 300 stores within three years, further ramping it up to 500 within five years.
Aside from expanding its store network, SPAVI also redesigned interiors for the newer branches and launched new products to attract more millennials into their outlets.
“The brand has been able to stay relevant; it has gone through a lot of adaptations in response to the changing times, and our ability to touch lives has formed the foundation of our fiercely loyal base of guests,” Mr. Gregorio said.
SPAVI also owns the perpetual rights to franchise the Shakey’s brand in the Middle East, Asia excluding Japan and Malaysia, China, Australia, and Oceania. The company has at least 18 outlets in the pipeline in these locations over the next few years.
The company’s net income attributable to the parent went up six percent to P534.64 million in the first nine months of 2018, compared to P503.61 million in the same period a year ago. This followed a 10% uptick in gross revenues to P5.49 billion in the same period a year ago.
Shares in SPAVI jumped 1.95% or 24 centavos to close at P12.54 each at the stock exchange on Wednesday.